Judge's Frustration Intensifies in NFL "Sunday Ticket" Lawsuit
LOS ANGELES -- The class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL has taken a dramatic turn as U.S. District Judge Philip Gutierrez expressed increased frustration over how the plaintiffs' attorneys are handling their side of the case. This sentiment was palpable on Tuesday, even before Dallas Cowboys owner Jerry Jones took the stand for a second day of testimony.
Understanding the Premise
Judge Gutierrez emphasized that the case's premise was straightforward. He remarked on the ease of understanding the frustration from a Seattle Seahawks fan living in Los Angeles, who can't watch their favorite team without purchasing the entire "Sunday Ticket" subscription for all Sunday afternoon out-of-market games.
The class-action lawsuit encompasses 2.4 million residential subscribers and 48,000 businesses that paid for the package of out-of-market games between the 2011 and 2022 seasons. The plaintiffs claim that the NFL violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices. Furthermore, they argue that the league restricted competition by offering "Sunday Ticket" exclusively through a satellite provider.
The NFL's Defense
The NFL firmly maintains the legality of selling "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs counter that this exemption only applies to over-the-air broadcasts, not pay TV. Should the NFL be found liable, the jury could award up to $7 billion in damages, potentially tripling to $21 billion due to the nature of antitrust cases.
Judge's Ongoing Frustrations
Tuesday was not the first instance where Judge Gutierrez voiced his frustrations with the plaintiffs' side. On Monday, he admonished their attorneys for repeatedly describing past testimony, which he deemed a waste of time. Before Jerry Jones resumed his testimony, Gutierrez expressed doubts about the relevance of citing a 1995 lawsuit filed by Jones against the NFL, which challenged the league's licensing and sponsorship procedures. That case eventually settled out of court.
When questioned on Tuesday about whether teams should be able to sell their out-of-market television rights, Jones replied that they should not, as it "would undermine the free TV model we have now."
Support from CBS Sports
Retired CBS Sports chairman Sean McManus also took the stand, reiterating his long-standing opposition to "Sunday Ticket" and the NFL's Red Zone channel. McManus believes that "Sunday Ticket" infringes on the exclusivity CBS has in local markets. Both CBS and Fox requested during negotiations that "Sunday Ticket" be sold as a premium package.
It's noteworthy that DirecTV, not the NFL, set the prices for "Sunday Ticket" during the class-action period. The league's television contracts with CBS and Fox stipulated that the "resale packages (Sunday Ticket) are to be marketed as premium products for avid league fans that satisfy complementary demand to the offering of in-market games." Additional language prohibited selling individual games on a pay-per-view basis. From 1994 through 2022, the NFL received a rights fee from DirecTV for the package. Starting last year, Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons.
Deposition Insights
In a deposition, DirecTV marketing official Jamie Dyckes revealed that MLB, the NBA, and the NHL had a suggested retail price for their out-of-market packages. Dyckes added that there was revenue sharing between the leagues and the carriers, as their packages were distributed across multiple platforms.
Testimony will continue Thursday, with closing statements scheduled for early next week. Judge Gutierrez mentioned he might consider invoking a rule allowing the court to find that a jury lacks sufficient evidence to rule for a party in a case.
Judge's Stinging Remarks
Throughout the proceedings, Judge Gutierrez's comments have reflected his mounting frustrations. He candidly admitted, "I'm struggling with the plaintiffs' case." He further criticized the handling of the case, remarking, "The way you have tried this case is far from simple." He also pointed out, "This case has turned into 25 hours of depositions and gobbledygook," adding, "This case has gone in a direction it shouldn't have gone."
As the case progresses, all eyes remain on the courtroom, anticipating whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined.